The Shiba Inu (SHIB) cryptocurrency has faced a sluggish market performance, largely due to its substantial circulating supply. However, a recent tweet by a SHIB advocate known as @dhelzkiie7 has sparked hope within the 559-billion-strong community. The advocate outlined several strategies that could potentially shrink the SHIB supply, leading to a potential price increase.
One of the proposed methods involves token swaps. When users exchange SHIB for other tokens within Shibarium, the decentralized exchange (DEX), the original SHIB tokens can be burned, effectively removing them from circulation. This burning mechanism is commonly employed during blockchain migrations or token standard upgrades.
Additionally, token swaps can be used in Decentralized Finance (DeFi) to create liquidity pools. SHIB tokens locked in these pools are effectively taken out of circulation for a set period, further reducing the available supply.
Shiba Inu Burning Strategies
The SHIB advocate also suggests minting NFTs within the Shibarium ecosystem. Transactions involving these NFTs, including buying, selling, and trading, would require SHIB, contributing to the burning process if fees are implemented. Additionally, staking NFTs and regular SHIB tokens can also temporarily remove them from circulation, adding to the overall supply squeeze.
The prospect of a reduced SHIB supply has excited the Shiba Inu community. This enthusiasm is further fueled by a recent 4,000% surge in SHIB burning reported by Shibburn on May 6, 2024. During this period, an astounding 81.64 million SHIB tokens were burned within 24 hours, igniting optimism about the token’s future price trajectory.
While the proposed methods and recent burn surge offer a glimmer of hope, it’s crucial to remember that the long-term success of SHIB depends on various factors beyond supply reduction. These include wider adoption, integration with mainstream applications, and the overall health of the cryptocurrency market.
Shiba Inu is currently trading at the price of $0.00002422, a 2.49% decline in the last 24 hours. However, sustained price growth will depend on the effectiveness of the implemented strategies and the broader market sentiment towards SHIB.
Related Reading | Cardano Ready to Soar? Analyst Predicts Potential 4,095% Bull Run